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Cimpress NV (CMPR)
NASDAQ:CMPR
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Cimpress
(NASDAQ:CMPR)
54Neutral
Positive Factors
Customer acquisition
Vista continued its track record of attracting and retaining higher-value customers, with first-order gross profit per new customer reaching a record high during Q2/25.
Long-term outlook
Management believes that the disappointing results were due to short-term factors, and the company remains confident in its favorable long-term outlook.
Negative Factors
Revenue performance
The revenue shortfall was driven by lower-than-expected consumer products revenue in the company’s largest business segment, Vista, particularly in the United States.
Cimpress (CMPR) vs. S&P 500 (SPY)
Market Cap
$1.10B
Dividend YieldN/A
Average Volume (3M)279.57K
Price to Earnings (P/E)6.9
Beta (1Y)2.03
Revenue Growth4.60%
EPS Growth303.80%
CountryUS
Employees16,000
SectorCommunication Services
Sector Strength82
IndustryCorporate Services
Share Statistics
EPS (TTM)6.34
Shares Outstanding24,820,543
10 Day Avg. Volume283,604
30 Day Avg. Volume279,571
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)N/A
Price to Sales (P/S)0.33
Price to Cash Flow (P/CF)1.60
P/FCF Ratio1.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$91.00Price Target Upside107.19% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Cimpress Business Overview & Revenue Model
Company DescriptionCimpress Plc invests in and builds entrepreneurial and mass-customization businesses. Its business includes BuildASign, Drukwerkdeal, Exaprint, National Pen, Pixartprinting, Printi, Vistaprint and WIRmachenDRUCK. The company was founded by Robert S. Keane in January 1995 and is headquartered in Dundalk, Ireland.
How the Company Makes MoneyCimpress makes money through the sale of customized print and marketing products, primarily via its online platforms. The company generates revenue by facilitating the design, customization, and purchase of printed products such as business cards, brochures, and banners. Its revenue model is largely driven by direct-to-consumer sales through its Vistaprint brand. Additionally, Cimpress utilizes a mass customization model, allowing it to efficiently produce highly personalized products at a lower cost. Key partnerships with suppliers and technology providers enhance its production capabilities and distribution network, contributing to its earnings by optimizing cost efficiency and expanding its market reach.
Cimpress Financial Statement Overview
Summary
Cimpress exhibits strong revenue growth and cash flow generation, but profitability margins are modest. The balance sheet's high leverage and negative equity highlight financial instability, posing significant risks.Income Statement
Cimpress has shown consistent revenue growth, with a recent TTM revenue of $3.36 billion, a 2.0% increase from the previous year. The gross profit margin stands at 47.7%, indicating good cost management. However, the net profit margin is relatively low at 4.8%, reflecting challenges in translating revenue growth to bottom-line profitability. EBIT margin at 6.7% and EBITDA margin at 9.6% are modest, suggesting room for improvement in operational efficiency.65
Positive
Balance Sheet
The company's balance sheet reveals high leverage, with a negative stockholders' equity of $554 million, leading to an undefined debt-to-equity ratio. The return on equity is also not calculable due to negative equity. Despite having total assets of $1.92 billion, the equity ratio is negative, highlighting financial instability and potential risks associated with high debt levels.40
Negative
Cash Flow
Cimpress has demonstrated solid cash flow generation with an operating cash flow of $312 million in the TTM period. The free cash flow grew by 16.7% year-over-year, showcasing effective cash management. The operating cash flow to net income ratio is 1.96, indicating strong cash conversion. However, the free cash flow to net income ratio is 1.37, suggesting that not all net income translates to free cash flow.70
Positive
| Breakdown | |||||
| TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 3.36B | 3.29B | 3.08B | 2.89B | 2.59B | 2.48B | Gross Profit |
| 1.60B | 1.60B | 1.44B | 1.39B | 1.28B | 1.23B | EBIT |
| 226.01M | 247.35M | 57.31M | 63.97M | 123.51M | 170.35M | EBITDA |
| 389.29M | 400.03M | 245.00M | 284.44M | 229.03M | 246.79M | Net Income Common Stockholders |
| 159.53M | 173.68M | -185.98M | -50.57M | -74.94M | 83.36M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 224.43M | 208.28M | 168.85M | 327.00M | 335.27M | 45.02M | Total Assets |
| 1.92B | 1.89B | 1.85B | 2.17B | 2.18B | 1.82B | Total Debt |
| 1.67B | 1.72B | 1.76B | 1.79B | 1.89B | 1.63B | Net Debt |
| 1.45B | 1.52B | 1.63B | 1.52B | 1.70B | 1.59B | Total Liabilities |
| 2.45B | 2.41B | 2.47B | 2.53B | 2.56B | 2.15B | Stockholders Equity |
| -554.47M | -550.15M | -623.14M | -494.92M | -449.37M | -407.48M |
| Cash Flow | Free Cash Flow | ||||
| 218.73M | 237.49M | 18.73M | 100.20M | 165.76M | 243.99M | Operating Cash Flow |
| 312.40M | 350.72M | 130.29M | 219.54M | 265.22M | 338.44M | Investing Cash Flow |
| -86.94M | -54.61M | -103.72M | -4.00M | -354.32M | -66.86M | Financing Cash Flow |
| -268.16M | -222.55M | -177.11M | -106.57M | 224.13M | -258.25M |
Cimpress Technical Analysis
Negative
43.92
Price Trends
60.35
Negative
69.38
Negative
78.05
Negative
Market Momentum
-4.72
Negative
27.34
Positive
19.20
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CMPR, the sentiment is Negative. The current price of 43.92 is below the 20-day moving average (MA) of 48.06, below the 50-day MA of 60.35, and below the 200-day MA of 78.05, indicating a bearish trend. The MACD of -4.72 indicates Negative momentum. The RSI at 27.34 is Positive, neither overbought nor oversold. The STOCH value of 19.20 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CMPR.
Cimpress Risk Analysis
Cimpress disclosed 34 risk factors in its most recent earnings report. Cimpress reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Cimpress Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $188.60B | 35.35 | 36.31% | ― | 11.02% | 4.96% | |
66 Neutral | $64.21B | 60.78 | 26.13% | ― | 13.48% | 0.66% | |
66 Neutral | $28.08B | 48.96 | 10.03% | ― | 12.11% | 14.35% | |
63 Neutral | $66.59B | 31.85 | 16.27% | ― | -1.19% | 48.33% | |
63 Neutral | $18.92B | 48.51 | 12.99% | ― | 6.05% | 63.78% | |
59 Neutral | $29.20B | 0.14 | -12.92% | 4.06% | 2.18% | -51.74% | |
54 Neutral | $1.10B | 6.93 | -27.42% | ― | 4.60% | 303.80% |
* Communication Services Sector Average
Performance Comparison
CMPR
Cimpress
43.92
-45.70
-50.99%
ADBE
Adobe
438.60
-134.95
-23.53%
ANSS
Ansys
317.49
-11.88
-3.61%
CDNS
Cadence Design
239.22
-66.99
-21.88%
SNPS
Synopsys
432.46
-128.74
-22.94%
PTC
PTC
157.00
-28.75
-15.48%
Cimpress Earnings Call Summary
Earnings Call Date: Jan 29, 2025 | % Change Since: -40.83% | Next Earnings Date: Apr 23, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strategic progress in new product introductions and customer growth but was overshadowed by disappointing financial results, challenges in the U.S. market, and increased operational costs. The company is optimistic about future growth but faces significant short-term hurdles.Highlights
Introduction of New Product Categories
Vista and Cimpress are making progress with new product introductions, particularly in signage, promotional products, and packaging categories, which showed strong growth globally.
Strategic Focus on Upload & Print Expansion
Cimpress is planning to launch its successful European Upload & Print model in the U.S., which is a significant growth opportunity.
Continued Growth in Higher Value Customers
Vista is experiencing strong growth with its highest-value customers, which is a positive indicator for future profitability.
Lowlights
Disappointing Q2 Financial Results
Cimpress reported a 2% revenue growth but faced a decline in adjusted EBITDA by over $34 million compared to the previous year.
Significant Challenges in the U.S. Market
The U.S. market, particularly Vista, faced challenges including lower performance in organic search due to changes in Google's algorithm and increased advertising costs.
Pressure on Business Cards and Holiday Cards
Vista's business cards and holiday cards faced underperformance in Q2, with organic search issues and increased advertising costs impacting new customer acquisition.
Increased Costs and Competitive Pressure
The cost of performance advertising was nearly 50% higher, and there was increased competitive intensity and discounting from competitors, particularly in legacy products.
Challenges in Consumer-Focused Products
BuildASign and Vista faced declines in consumer-focused products such as holiday cards and home decor, particularly in the U.S. market.
Company Guidance
During the Cimpress Second Quarter Fiscal Year 2025 Earnings Call, the company provided guidance for the remainder of the fiscal year following a disappointing Q2 performance. The company expects revenue in constant currencies to grow at least 4% in the second half of the year. Adjusted EBITDA is projected to be at least $220 million, while adjusted free cash flow is anticipated to reach at least $50 million. Additionally, Cimpress aims to exit the fiscal year with a net leverage of approximately 3.0 times trailing total bond EBITDA, slightly above its target of 2.5 times due to the Q2 underperformance. The company has initiated multiple actions to improve performance, reduce operating expenses, and optimize pricing, which are already factored into the updated fiscal 2025 guidance.Cimpress Corporate Events
Executive/Board ChangesShareholder Meetings
Cimpress Shareholders Approve Key Proposals at AGM
Neutral
Nov 25, 2024
At Cimpress plc’s Annual General Meeting on November 20, 2024, shareholders voted on several key proposals, including reappointing Dessislava Temperley to the Board of Directors, approving executive compensation, and amending the 2020 Equity Incentive Plan. They also renewed the Board’s authority to issue shares and opt out of preemption rights. PricewaterhouseCoopers Ireland was reappointed as the statutory auditor, and the Board or Audit Committee was authorized to set its remuneration.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.